The LNJ Bhilwara Group has decided to restructure its branded textile business.
The group has decided to put its three-year-old leisurewear brand Buddy Davis on the block even as it will invest Rs 5 crore in expanding the Mayur Suitings range.
The group Chairman, Mr Ravi Jhunjhunwala, said the group had been unable to effectively market brand Buddy Davis, which had notched up sales of only Rs 15 crore last fiscal.
Launched in 2001 as the group's foray into casual wear and sold through the company's exclusive outlets, Buddy Davis was expected to rake in Rs 100 crore sales turnover over a five-year period.
"Buddy Davis had been launched as a leisure wear brand targeted at the youth but its sales performance has been disappointing. We have now decided to sell it, provided we get the right price," Mr Jhunjhunwala said.
The brand is owned by Maral Fashions, a division of the Bhilwara group's export-oriented unit Maral Overseas.
It comprises knitted shirts, t-shirts, trousers, jackets and sweaters, targeted at the lower premium end of the domestic casual wear market. It is at present sold through 22 exclusive outlets of the group across 20 cities.
Asked whether the group was in negotiations with any buyers for Buddy Davis, Mr Jhunjhunwala declined to comment. The group had bought this brand for about Rs 1 crore from Mayur Knits Private Ltd.
On Mayur Suitings, Mr Jhunjhunwala said the group was investing Rs 5 crore in setting up a manufacturing plant near Bangalore for exports of trousers and suits.
"We have been getting requests from overseas for the finished products under Mayur and the new plant will meet the increasing demand for this brand abroad," he said.
At present, the group has fabric production capacity of four million metres per annum for its twin suiting brands - Mayur and BSL.
Mr Jhunjhunwala said the group also sells a fashion brand called La Italia, which comprises trousers and suits for men.
The brand posted Rs 2-crore sales last fiscal but the group has no plans to include it in the present restructuring.
The LNJ Bhilwara Group posted a Rs 1,815-crore turnover last fiscal and has interests in hydro-power, yarn, textiles and graphite electrodes.